Gold to benefit long term from US election outcome
NEWYORK (Scrap Register): Gold may well benefit two ways from U.S. midterm elections, said Commerzbank.
Democrats won control of the House of Representatives, although Republicans maintained the Senate.
This presumably will put an end any further tax cuts, “which means in the longer term that the Fed will need to implement fewer rate hikes, which per se will have a negative impact on the U.S. dollar,” Commerzbank added.
President Trump may instead focus more on foreign policy, which is likely to generate additional uncertainty. Gold would profit long term from both factors.